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Emphasising the health benefits of its updated smartwatch could prove a shrewd move for the U.S. device maker.
Amid all the excitement about wireless earphones and a notable absence of 3.5 mm jack connections, Apple this week repositioned its smartwatch in a way that could make all the difference to its prospects in the wearables market.
Unveiled late on Wednesday, the Apple Watch Series 2 is waterproof to a depth of 50 metres, making it a practical choice for swimmers, surfers and particularly sweaty joggers. Apple claims it can even detect what stroke a swimmer is using to accurately measure how many calories are being burned.
It also now comes with a GPS chip, so the Watch Series 2 no longer needs to be paired with an iPhone in order for the wearer to know where they are and the distance they have covered.
To really hammer home its point, Apple also announced it has partnered with Nike to launch a special edition of the Watch Series 2 that ships with Nike’s running app and a snazzy collection of rubber straps, designed apparently to aid ‘sweat management’. I thought antiperspirant was good for that sort of thing, but apparently you’re now supposed to use a smartwatch.
Sure, Apple still offers an expensive ‘Edition’ edition of the Watch Series 2 for people who enjoy flaunting their wealth. It has also partnered with luxury accessories maker Hermès for an even more expensive ‘Edition’ edition.
Nonetheless, it is the sporty version that likely has the broader appeal and will therefore make or break Apple’s fortunes in the smartwatch sector.
"Fitness is the low-hanging fruit for wearables," said Jitesh Ubrani, senior research analyst for IDC mobile device trackers, earlier this week.
According to the research firm, ‘basic wearables’, which includes fitness trackers, are driving the overall wearables market, accounting for 82.8% of all wearable device shipments in the second quarter and offsetting declining shipments of ‘smart wearables’, which include devices like the Apple Watch.
Ramon Llamas, research manager, wearables, at IDC, said basic wearables like fitness trackers have "a clear value proposition for end users, an abundant selection of devices from multiple vendors, and affordable price points."
As if that doesn’t spell it out clearly enough, according to IDC, fitness tracker maker Fitbit shipped 5.7 million units in the second quarter, up 28.7% year-on-year. By comparison, Apple shipped 1.6 million smartwatches, down 56.7% year-on-year.
Admittedly, the slump was mainly down to Apple not launching the new Watch until this week, said IDC; however, the decline was also offset partially by Apple having lowered the price of the Apple Watch Sport.
By aligning its new Watch more closely with health and fitness, Apple could tempt first-time buyers, who may have been considering a basic fitness tracker, to spend a bit extra for an Apple Watch. Its new smartwatch may also prove attractive to consumers looking to upgrade their basic fitness tracker to something with a few more bells and whistles.
Indeed, "the market is evolving and we’re starting to see consumers adopt new functionality, such as communication and mobile payments, while enterprises warm to wearables’ productivity potential," noted Ubrani.
Or it could still struggle, if the sceptics turn out to be right.
Apple has addressed "some of the rough edges" of the first Watch, said Ian Fogg, head of mobile analysis at IHS Technology. However, "these are sensible but unexciting enhancements."
Meanwhile, for Radio Free Mobile founder Richard Windsor, Apple has still not answered the question: ‘why should I buy it?’
"Hence, I do not see the Apple Watch 2 lifting the smartwatch market out of its current decline," he predicted.
With Christmas (yes, the dreaded ‘C-word’ has been used and it is only September) on the horizon, we will soon find out if the Apple Watch Series 2 is the proven pathway from the low-hanging fruit of fitness trackers to the, err, high-hanging fruit of smartwatches.
